Fiber broadband provider Converge Information and Communications Technology Solutions, Inc. took out a P3 billion term loan with state-owned Land Bank of the Philippines (LANDBANK) to fund its terrestrial and subsea domestic fiber backbone network.
The total loan package from LANDBANK also includes an additional short term loan line as well as a facility for trade transactions amounting to up to P2 billion.
Converge has programmed a total of P20 billion for capital expenditures this year, with bulk of the funds going into its nationwide expansion where it connected Visayas and Mindanao to its national fiber backbone.
“This loan brings us one step closer to our goal of connecting the unserved and underserved areas in the country, reach into untapped markets and ‘Go Deep’ into existing ones,” remarked Converge CEO Dennis Anthony Uy.
“There is still huge pent-up demand for high-speed broadband connectivity in the country,” he pointed out.
“And the need for quality internet services became even more critical when the pandemic happened. Suddenly, the home became the office, the school, entertainment center, and marketplace in one,” Uy explained.
“We expect this financing facility to strengthen our balance sheet and help us reach our goal of covering 55% of Filipino households by 2025,” added Converge President Maria Grace Uy.
Recently, Converge rolled out its services in Cebu province and did a soft launch in Davao City.
As of end-June 2021, the pure fiber network of Converge has passed over 8.3 million homes, more than double the figure from its year-ago level.
This accounts for 32 percent of total Philippine households and 57 percent of total homes in Luzon.
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